Martin Casado, General Partner at Andreessen Horowitz, discusses enterprise go-to-market strategy at Data Driven NYC, citing a board lesson from Ben Horowitz.
“Especially in enterprise, there is no single decision that you make that's more important or directly tied to your value than pricing.”
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More from Martin Casado
PredictionNot checkable as stated
The traditional 80% margin enterprise sales model is going away
“I think that model is basically going away. It's being eaten on the bottom by bottom up, which we can talk about later, and I believe on the top it's been eaten by services.”
Martin CasadoMar 19, 2019▶ 9:21Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC)
Opinion
Open-source software distribution is being superseded by SaaS models
“I almost feel like open source is just being superseded by any software as a service, and what I mean by that is the following. It's like, as soon as you host something as a service, people don't seem to ask so much about open source, right?”
Martin CasadoMar 19, 2019▶ 20:00Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC)
Insight
Technical founders' biggest mistake is assuming products have intrinsic value
“I think this is probably the number one error technical founders make, and it's the following, right? So, alright, so I'm in my lab, and I make my cool thing, my cool widget, whatever it is, and then the big logical fallacy we all make is that whatever, that w…”
Martin CasadoMar 19, 2019▶ 3:05Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC)
AssertionNot checkable as stated
Enterprise customers spend $2-$3 on services for every software dollar
“The reality is for every dollar that most customers spend on a vendor product, they're spending two or three dollars on services.”
Martin CasadoMar 19, 2019▶ 9:43Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC)
Insight
Startups need around $30M ARR before partners handle professional services
“In my experience, when you hit about 30 million-ish dollars a year, you actually have enough of a market to actually incent the partners.”
Martin CasadoMar 19, 2019▶ 12:24Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC)
AssertionNot checkable as stated
a16z data shows top revenue startups almost always overlay direct sales
“If we go through our portfolio, if we go through the data that we have, we look at the companies that actually hit the most revenue, and in almost every case, they overlaid sales on top of the organic growth.”
Martin CasadoMar 19, 2019▶ 16:51Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC)
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